CAPRICORN DISTRICT MUNICIPALITY PROFILE 1 TABLE OF CONTENTS 1. 1.1 1.2 1.3 1.4 2. 2.1 2.2 2.3 2.4 2.5 2.6 3. 4. 4.1 4.1.1 4.1.2 4.1.3 5. 6. 7. EXECUTIVE SUMMARY INTRODUCTION Overview Municipalities within the District Political and Administrative Leadership and Seat of District Political Representation SERVICE DELIVERY Household Infrastructure Sanitation Water Electricity Refuse Removal Service Provider AUDIT OPINIONS STATE OF LOCAL GOVERNMENT ASSESSMENT Overview of findings on assessment in the Municipality Governance Financial Management and Viability Service Delivery INFRASTRUCTURE PRIORITIES IN TERMS OF THE MUNICIPAL TURN-AROUND STRATEGY MIG PROJECTS VULNERABILITY CLASSIFICATION 2 3 4 4 5 5 6 7 7 7 7 8 9 9 9 11 11 11 11 11 11 12 15 EXECUTIVE SUMMARY Capricorn District Municipality (CDM) is the economic hub and includes the capital, Polokwane. Nearly 44% of the populations of CDM live in Polokwane, one of the fastest growing municipalities in the country. The district is well served by various major provincial roads and the N1 national road. Although 75% of all households have access to clean, piped water, a significant number still obtain their water from rivers, dams and springs. These households are susceptible to waterborne diseases, due to the fact that almost 75% of households do not have sanitation which meets with minimum RDP requirements, and ground water is easily contaminated. Over 25% of people have no formal education and over 40% have a limited education. It is estimated that over 55% of the economically active population is unemployed. Despite relative poverty and unemployment, CDM is one of the highest contributors to the provincial gross domestic product and has a fairly reasonable infrastructure that can build a solid foundation for economic development and growth. Community services (mostly government) are the largest sector. An overview of household access to infrastructure in the district shows an improvement from 34% in 1996 to 57% in 2009. The main contributor to the increase in access is electricity infrastructure. Audit outcomes for Capricorn district municipality as well as those of its locals have not been impressive over the period 2005/6 – 2009/10. The State of Local Government Assessment found there is insufficient funding for electricity, waterborne sewerage, roads, disaster management, and solid waste in the Capricorn District. The municipality has four water treatment plants in their jurisdiction and they must be upgraded. Unfunded electricity mandate resulted in R30 million being invested in 2008/09. The Capricorn District Municipality identified a key number of strategic challenges on service delivery and infrastructure development in the Municipal Turn-Around Strategy, including the following: Insufficient bulk water source to address the backlog Inadequate funding for infrastructure development and maintenance Institutional capacity challenges Ageing infrastructure Integrated planning Strengthening of powers & functions Four of the five local municipalities in the Capricorn District have been classified as in the category of most vulnerable by DCoG in terms of functionality, socio-economic profile and backlog status. This profile confirms that infrastructure prioritisation in Capricorn District should focus on backlogs and refurbishment of infrastructure. 3 1. INTRODUCTION 1.1 Overview1 Situated centrally in Limpopo province, Capricorn District Municipality (CDM) is the economic hub and includes the capital, Polokwane. Nearly 44% of the populations of CDM live in Polokwane, one of the fastest growing municipalities in the country. The district is well served by various major provincial roads and the N1 national road, which links Gauteng to Zimbabwe and the rest of Africa. Gateway International is the only commercial airport in the region, serving both passenger and freight needs. However, numerous private airstrips exist, mainly for the use of tourism and private purposes. Land claims and land redistribution could have a significant impact on spatial patterns and future land use. In Aganang and Lepelle-Nkumpi local municipalities, between 50% and 60% of the land is subject to land claims. Many people could obtain access to land that could result in improved living standards and quality of life. Land development and land use management is also hindered by the different legislation applicable to different areas and settlements in the CDM area. There are still significant backlogs in housing (over 300 000 units), and much of the population do not have ready access to health care facilities: approximately 18% of the total population in the CDM area live outside the service area of a hospital and about 30% do not have reasonable access to basic health services. Although 75% of all households have access to clean, piped water, a significant number still obtain their water from rivers, dams and springs. These households are susceptible to waterborne diseases, due to the fact that almost 75% of households do not have sanitation which meets with minimum RDP requirements, and ground water is easily contaminated. Over 25% of people have no formal education and over 40% have a limited education. It is estimated that over 55% of the economically active population is unemployed. A significant number of economically active males work in other districts and provinces, such as Gauteng. Migrancy remittances earned outside CDM are the main source of income for many households and the major source of money flowing into CDM. Income and upward mobility opportunities are thus extremely limited. The most important sources of income in CDM are the tourism industry and the informal sector (household spazas, hawking, peddling). More than 70% of households in Aganang, Blouberg and Molemole live below the bread-line. Source: Gaffney’s, November 2009: Local Government in South Africa 2009 – 2011, Official Yearbook: p 898 - 900. 1 4 Despite relative poverty and unemployment, CDM is one of the highest contributors to the provincial gross domestic product and has a fairly reasonable infrastructure that can build a solid foundation for economic development and growth. Community services (mostly government) are the largest sector. This is followed by trade and retail activity. Agriculture has shown the fastest growth, due possibly to emerging farmers and a large export market, and in spite of a semi-arid climate. Potatoes are the most important crop, followed by tomatoes, eggs, broilers and beef, and then pork and citrus production. Within the manufacturing sector, there are high vacancy rates in industrial parks, and therefore potential for growth. There are investment opportunities in tourism, agriculture, mining and manufacturing. A total of 12 growth points have been identified in the district, most of them in the Blouberg, Polokwane and Molemole local municipalities. CDM has unique natural assets and is already a domestic and international tourist destination. Tourist attractions include several government-owned reserves such as Blouberg, Moletsi, Bakone and Machaka. There are registered natural heritage sites at Brackenhill and Goedehoop. About 400 Stone and Iron Age sites are located in the Makgabeng Mountains, some of them boasting rock art. The Wolkberg Wilderness is a pristine area, and the largest wilderness area readily available to the South African public. 1.2 Municipalities within the Capricorn District The details of the five local municipalities within the District are tabled below: Table 1: Statistics of the Capricorn District and Local Municipality Municipalities within the District Capricorn District Municipality Aganang Local Municipality Blouberg Local Municipality Lepele-Nkumpi Local Municipality Molemole Local Municipality Polokwane Local Municipality Area (km2) in 2009 Area (km2) after 2011 Local Government Elections & % change 21,705.45 21,705.45 - Population No. of House holds Poverty Rate 1,235,325 283,761 66.32% 1,899.30 1,880.57 0.99% 144,535 33,614 72.10% 9,229.40 9,248.13 0.20% 192,895 35,372 73.54% 3,463.45 3,463.45 - 239,887 58,115 65.53% 3,347.33 3,347.33 - 99,770 27,124 68.69% 3,765.98 3,765.98 - 558,238 129,536 51.75% 5 1.3 Political and Administrative Leadership and Seat of District2 Political Leadership: Executive Mayor: Mr M L Mapoulo Administrative Leadership: Municipal Manager: Mr D N Molokomme The head office of the District is located in Polokwane. 1.4 Political representation3 Table 2: Local Government Election 2006 / Provincial and National Elections 2009 comparison: Leadin g Parties in the Electio ns 1st Local Government Elections 2006 2nd 3rd 4th Party ANC Ward Votes and % Councillor Seats Party Seats % ANC 37 78.7% 166,550 83,9% 162,490 81,8% DA 13,597 6.8% 14,202% 7.1% DA 3 6.4% UIF 5,162 2.6% 5,253 2.6% ACDP 2 4.3% ACDP 4,005 2.0% 3,295 1.7% AZAPO 1 2.1% OTHER 4 8.5% 47 100% Other Totals Party Votes and % 9,233 4.7% 13,464 6.8% 198,547 100% 198,704 100% 2 Provincial Elections 2009 National Elections 2009 Party Party ANC Votes and % 80.2% ANC COPE 260,11 1 35,463 10.9% DA 11,760 3.6% ACDP 2,905 0.9% ACDP Other 14,142 4.4% Other 324,38 1 100% Votes and % 270,502 80,8% COPE 35,090 10.5% DA 12,914 3.9% 2,886 0.9% 13,369 4.0% 334,761 100% Source: Capricorn DM; August 2011 UPDATE Aug’09: DC40 seats - ANC (85%) 17 seats, ACDP (5%) 1 seat, DA (5%) 1 seat, UIF (5%) 1 seat, Total 20 DC40 seats 3 6 Figure 1: 2011 Local Government Election results and seat allocations: The ANC is the leading party in terms of proportional DC40 Seats in Capricorn, with 18 seats of 21 seats. 7 2. SERVICE DELIVERY4 2.1 Capricorn District Municipality Household Infrastructure Household Infrastructure Overview LIM - DC35 Capricorn District Municipality 0.80 0.70 0.60 0.50 Index 0.40 0.30 0.20 LIM - DC35… 0.10 0.00 19961997199819992000200120022003200420052006200720082009 Source: IHS Global Insight Regional eXplorer version Capricorn district has the second highest access to infrastructure amongst districts in the province. An overview of household access to infrastructure in the district shows an improvement from 34% in 1996 to 57% in 2009. The main contributor to the increase in access is electricity infrastructure. 2.2 Sanitation With regard to access to sanitation, the district municipality’s household access to hygienic toilets has gone up from 22% in 1996 to 39% in 2009. The improvement in access to sanitation in general in the Municipality is mainly due to the increase in the use of pit latrines with ventilation and pit latrines which stands at 53%. 2.3 Water Access to piped water above RDP level increased slightly from 57% to 60% from 1996 to 2009. Similarly, there has been a slight increase as well in access to piped water below RDP level and more than 20% of the households have access to this service. 4 Sources: IHS Global Insight Regional eXplorer version 574 and Municipal Demarcation Board, 2008: National Report on Local Government Capacity, District and Local Municipalities, MDB Capacity Assessment, 2007/2008. 8 2.4 Electricity The increase in electricity connections is the biggest infrastructure achievement in the municipality. In 1996, household access to electricity connections was at a low level of 32%. Access has, however, increased over the years reaching 91% by 2009. This is an increase of about 60% and higher than the provincial and national averages. 2.5 Refuse removal Access to formal refuse removal service has increased from 12% 1996 to 19% in 2009 in the District Municipality. While this is the case, personal refuse removal also went up over the years reaching 70% in 2009. The district is rural and the low levels of formal refuse removal must be taken in the context of low settlement densities, where on-site disposal or backyard burning of waste is sometimes appropriate. 2.6 Service provider Capricorn district does not have authority but performs the electricity reticulation function. The district does have authority and is performing potable water and sanitation and the refuse removal, refuse dumps and solid waste disposal functions. 3. AUDIT OPINIONS Table 3: Audit Opinions of the District and Local Municipalities Municipality Audit Opinion 2005/6 Audit outstanding Adverse Audit Opinion 2006/7 Disclaimer Audit Opinion 2007/8 Disclaimer Audit Opinion 2008/9 Disclaimer Audit Opinion 2009/10 Disclaimer Disclaimer Qualified Disclaimer Blouberg LM LepelleNkumpi LM Disclaimer Adverse Adverse Disclaimer Disclaimer Disclaimer Financially unqualified with findings Disclaimer Disclaimer Molemole LM Polokwane LM Qualified Audit outstanding Adverse Audit outstanding Disclaimer Disclaimer Capricorn DM Aganang LM Disclaimer Financially unqualified with findings Qualified Audit not finalised at legislated date Disclaimer Qualified Source: Auditor-General 2009 and 2011, see www.agsa.co.za Audit outcomes for Capricorn district municipality as well as those of its locals have not been impressive over the period 2005/6 – 2009/10. For instance, Aganang and 9 Polokwane were the only municipalities to obtain financially unqualified opinions in 2008/9. In the case of Capricorn district disclaimers were the audit outcomes from 2006/7 to 2009/10. Similarly, from 2007/8 to 2009/10 disclaimers were the audit outcomes in Molemole. 4. STATE OF LOCAL GOVERNMENT ASSESSMENT 4.1 Overview of findings on assessment in the municipality 4.1.1 Governance The State of Local Government Assessment of 2009 identified a number of governance issues in Limpopo including that oversight roles and management of council secretariat needs improvement. Two section 57 manager positions are vacant in Capricorn District, including the CFO. On public participation it was found that there are low levels of participation due to vastness of wards areas and lack of clear understanding of issues. The functionality of Ward Committees and the role and accountability of CDWs to local municipalities remain a challenge. There is a specific challenge in Capricorn District in integrating CDWs and district programmes. 4.1.2 Financial Management and Viability The following were common emerging issues in terms of financial management and viability listed in the Provincial Report on Limpopo: poor revenue collection, grant dependency within municipalities, limited allocations for maintenance and operations budget, recurring audit queries which were not rectified over the years, the billing system with an unreliable data resulting in poor debt collection compounded by the high Indigent rates. In terms of financial management the Capricorn District received a disclaimer of an audit opinion, due to a lack of supporting evidence. The Implementation of SAP financial system was problematic and legal issues arose with the service provider. 4.1.3 Service Delivery Service delivery issues raised in the Provincial Report includes poor planning capacity, aging infrastructure, land claims, and slow progress with achievement of MDGs. There is insufficient funding for electricity, waterborne sewerage, roads, disaster management, and solid waste in the Capricorn District. The municipality has four water treatment plants in their jurisdiction and they must be upgraded. Unfunded electricity mandate resulted in R30 million being invested in 2008/09. 10 5. INFRASTRUCTURE PRIORITIES OF THE MUNICIPAL TURN-AROUND STRATEGY The Capricorn District Municipality identified a key number of strategic challenges on service delivery and infrastructure development in the Capricorn Municipal Turn-Around Strategy, including the following: Insufficient bulk water source to address the backlog Inadequate funding for infrastructure development and maintenance Institutional capacity challenges Ageing infrastructure Integrated planning Strengthening of powers & functions Table 4: Infrastructure delivery in terms of the MTAS Water Municipal Actions Allocation of R127m for water infrastructure to reduce backlog by 5% for 2010/11 fy. Sanitation Refurbishment of infrastructure Increase of capacity to two WWTW based on the refurbishment Refurbishment of plan completed networks. Eg Lebowakgomo Testing of effluent Refurbishment in terms of Green infrastructure Drop requirements Cost recovery in Lebowakgomo Improve ground water quality & Enforcement of monitoring by-laws. through groundwater protocol for all sanitation project 11 Electricity Refuse removal and solid waste disposal l Total 3 000 Environmental households to be Management connected Plans for Land fill reducing the sites backlog by 4% Planning for 4 CDM to engage land fill sites DME for institutional Construction of 2 model crafting land fill sites. Institutional model through IGR structures Purchasing of equipment. Engage LEDET for fast-tracking the licensing process for landfill sites 6. MIG PROJECTS Table 5: MIG projects Municipality Project name Registered funds Capricorn DM Rampuru Water Supply Zebediela South Water Reticulation Project Motsane Bulk Water Supply Glen Alpine RWS (Mogalakwena group) Capricorn Household Sanitation Programme (Ga Phasha,Sekakene,Springs,Se konye,Maupye,Brilliant,Fatim a,Westphalia,Madikana,Mokg etlhe,Overdyk…) Schoongesight Water Supply and Storage Lenatong Water Supply and Storage Diepsloot Water Supply Mogwadi Borehole Development (Rita/Bethesda) La Rochelle Water Supply Capricorn Park Internal Bulk Reticulation Ga Madibeng/Sweethome BWS Specon Regional Water scheme(Dithabaneng) Nthabiseng Ground water improvement Driekoppies water supply Revision 1 Stocks Regional water scheme(Mapatjakeng) Mapataneng RWS :Bulk Water supply and storage Bellingsgate Water Reticuation Tswatsane Bulk Water supply and storage Marowe RWS (Ga kolopo)Bulk supply and storage PMU Capricorn DM Kalkspruit to Sechaba Road Upgrading phase 2 Upgrading of road from Knobel to Lonsdale Phase 1 Aganang LM Project status (Registered/de sign/tender/co nstruction) R 5,544,447.00 Total actual expenditure in the 2010/11 financial year on MIG funds R 529,353.27 Construction Project category (e.g. water, sanitation, PMU) Water R 9,019,100.91 R 3,086,742.47 R 144,103.53 R 60,156.95 Construction Construction Water Water R 15,482,836.59 R 2,698,385.52 Construction Water R 150,295,710.00 R22,304,782.80 Construction Sanitation R 1,449,450.00 R 1,458,489.35 Construction Water R 2,506,018.68 R 2,316,824.88 R 2,419,404.75 R 2,061,108.72 Construction Construction Water Water R 7,613,808.72 R 3,000,000.00 R 5,556,895.38 R 1,682,403.26 Construction Construction Water Water R 3,899,648.54 R 2,871,423.14 Construction Water R 3,000,304.78 R 2,190,420.18 Construction Water R 8,864,138.12 R 8,405,030.20 Construction Water R 3,392,987.30 R 1,889,675.53 Construction Water R 2,367,435.00 R 702,778.74 Construction Water R 2,000,000.00 R 1,812,225.85 Construction Water R 3,681,603.00 R 3,703,821.32 Construction Water R 3,858,523.54 R 3,776,570.63 Construction Water R 9,781,049.52 R 1,778,140.08 Construction Water R 3,498,006.00 R 10,061,957.78 R 3,577,275.71 R 2,236,669.26 Construction No status R 12,500,000.00 R10,620,298.78 Construction R 18,075,000.00 R 9,446,897.34 Construction Water PMU Roads & s/water Roads & s/water 12 MIG Blouberg LM LepelleNkumpi LM PMU Aganang LM Alldays internal streets stormwater R 0.00 No status R 3,900,000.00 R 809,337.30 Construction Puraspan Internal streets Desmond Park Internal streets Eldorado Sports Complex Eldorado Blouberg Municipality Satellite Office Desmond Park Internal streets extension Witten Internal streets extension Eldorado Sports Complex Phase 2 Senwabarwana extension to municipal offices R 3,900,000.00 R 0.00 Completed R 3,900,000.00 R 2,500,000.00 R 46,363.80 R 41,160.00 R 3,000,000.00 R 1,111,764.14 Completed Completed Design & Tender R 3,450,000.00 R 520,622.33 Construction R 4,100,000.00 R 2,973,559.89 Construction R 9,800,000.00 R 5,661,997.89 Construction R 6,250,000.00 R 181,014.61 Completed Witten Internal streets Alldays internal streets & stormwater extension Puraspan Internal streets and stormwater PMU Blouberg LM Lebowakgomo zone P street & stormwater Lebowakgomo Zone A & S Street & Stormwater Extension Lebowakgomo Zone B street & storm water Extension Mathibela Stormwater Management Lebowakgomo Road Network(EPWP) Lebowakgomo zone R street & stormwater phase 2 R 3,900,000.00 R 24,327.60 R 7,200,000.00 R 0.00 R7,500,000.00 R 3,828,411.84 R 0.00 R 469,744.31 Completed Design & Tender Design & Tender No status R 3,000,000.00 R 867,355.04 Completed Sports facilities Municipal Offices Roads & s/water Roads & s/water Roads & s/water PMU Roads & s/water R 8,990,000.00 R 6,267,660.13 R 6,510,000.00 R 186,899.99 Construction Design & Tender Roads & s/water Roads & s/water R 2,500,000.00 R 1,105,584.21 Construction R 21,000,000.00 R 4,625,614.91 Construction R 2,390,577.00 R 672,617.28 Completed R 4,200,000.00 R 1,678,561.79 Construction R 2,800,000.00 R 925,651.93 Construction R 2,800,000.00 R 1,381,709.77 Construction R 2,800,000.00 R 710,450.31 Construction R 2,000,000.00 R 535,221.45 Construction R 6,100,000.00 R 285,666.77 R 4,423,000.00 R 1,531,278.49 R 269,220.96 R 801,005.97 Completed Design & Tender No status R 28,859,649.12 R 1,721,554.16 Construction R 20,000,000.00 R 9,851,008.57 Construction & Lepelle Nkumpi installation of high mast lights Construction of Mehlareng Community hall Polokwane LM Maijane Community Hall Construction of Mathabatha/Hlakano Community Hall Construction of Palisade Fence: Traffic Department Lebowakgomo Unit F Street & Stormwater Upgrading of Mathibela Streets & Stormwater PMU Lepelle-Nkumpi LM Moletjie East Regional Water Scheme Matlala Main Arterial Road to Gilead Main Road upgrading 13 PMU Roads & s/water Roads & s/water Roads & s/water Sports facilities Municipal Offices Roads & s/water Roads & s/water Stormwater Roads & s/water Roads & s/water Street / Community Lighting multi purpose community halls multi purpose community halls multi purpose community halls community facilities Roads & s/water Roads & s/water PMU Water Roads & s/water of road D3437 Mankweng Regional Water Scheme Polokwane Municipality Rural Sanitation Project Moletjie North Bulk Water Supply Moletjie South Ground Water Scheme Sebayeng Construction of Streets Molepo Maja & Chuene Road Upgrading African Market Molepo RWS Upgrading of Road at Moletjie & Ga Matamanyana from Gravel to Tar EPWP phase 2 Houtrivier RWS Badimong Access road SDA 1 Area Construction of roads Badimong Regional Water Scheme Laastehoop Regional Water Scheme Mankweng Regional Water Scheme Sebayeng/Dikgale Regional Water Scheme Mothapo RWS Moletjie North Regional water Scheme Chuene Maja Regional Water Scheme Moletjie Cluster Arterial road upgrading of road D3422 from DD3390 Boyne Regional Water Scheme PMU Polokwane LM Source: All MIG projects, 2011 June R 45,796,296.46 Construction Water R 313,936,000.00 R 2,389,995.87 R 40,697,681.26 Construction Sanitation R 9,935,810.00 R 667,890.14 Construction Water R 8,954,070.03 R 1,329,249.97 Construction R 16,490,000.00 R 8,103,840.46 Construction R 6,465,328.11 R 18,023,609.00 R 30,500,000.00 R 1,193,823.90 R 4,789,817.22 R 4,298,715.41 Construction construction construction Water Roads & s/water Roads & s/water LED water R 6,000,000.00 R 27,342,187.93 R 607,485.72 R 1,463,612.36 construction construction R 9,250,000.00 R 1,864,584.75 construction R 14,500,000.00 R 133,112.10 construction R 63,929,853.25 R 2,477,834.22 water R 11,964,352.02 R 299,337.90 R 45,796,296.46 R 742,210.14 R 23,601,562.86 R 0.00 R 13,117,772.00 R 415,227.39 R 16,175,862.00 R 257,155.47 R 6,313,015.00 R 370,607.10 construction Design & Tender Design & Tender Design & Tender Design & Tender Design & Tender Design & Tender R 23,000,000.05 R 48,297.39 Design & Tender Roads & s/water R 11,953,131.00 R 14,590,272.55 R 3,900,840.39 R 3,323,921.02 Construction No status Water PMU Roads & s/water Water Roads & s/water Roads & s/water Water Water Water Water Water Water Capricorn district municipality and its four locals - Aganang, Blouberg, Lepelle-Nkumpi and Polokwane – submitted their June 2011 monthly reports on MIG projects within their respective jurisdictions. However, none of them have been signed by the accounting officer. This is not in line with reporting requirements. Also, Capricorn district, Aganang, Blouberg, Lepelle-Nkumpi and Polokwane all failed to report on the situation in their Project Management Units. As a result, the table above allocated a no status option under project status for Project Management Units. In Capricorn all projects are at a construction phase. Capricorn only has one project about sanitation and the rest are about water. In Aganang there are three projects of which three are about roads and water and all of them are at a construction phase. In Blouberg most projects are about roads and water and some have been completed. Like in Blouberg, 14 in Lepelle-Nkumpi and Polokwane most projects are about roads and water and in both municipalities most projects are at a construction phase. 7. VULNERABILITY CLASSIFICATION The DCoG Municipal Spatial Classification System was designed to develop municipal profiles according to spatial location, based upon results from indicator sets on functionality, socio-economic profile and backlog status. Its purpose is to inform a differentiated approach to municipalities. The four municipal classifications developed by DCoG are: Class 1: Most vulnerable (57 local municipalities) Class 2: Second most vulnerable (58 local municipalities) Class 3: Second highest performing (58 local municipalities) Class 4: Highest performing (58 local municipalities) The five local municipalities in the Capricorn District can be classified as follow: Table 6: Vulnerability Classification Local Municipality Aganang Blouberg Lepelle-Nkumpi Molemole Polokwane Classification Most vulnerable Most vulnerable Most vulnerable Most vulnerable Second highest performing From this table it is evident that four of the five local municipalities in the Capricorn District fall into the most vulnerable category. 15